Corporate Debt to GDP by Country

Interest Rates are low so Corporate Debt is high.

Luxembourg 318.7% - Company HQ Europe

Hong Kong 219.4% - Company HQ, Asia

Ireland 194.6% - Company HQ, US

Netherlands 171.9% - Company Income Shelter Europe

Belgium 155.9% - Company Merger & Acquisition Debt

Sweden 155.5% - Low Interest Rate Borrowing Haven

China 151.6% - $21.1 T Debt from State Owned Companies

France 141.0% - Debt from State Owned Companies

Norway 134.4% - Small Economy, Big Debt

Switzerland 118.1% - Merger & Acquisition Debt

Canada 117.2% - Systemic Corporate Debt

Singapore 166.4 – Corporate Debt including China

Denmark 111.3% - Company Debt

Finland 111.3% - Company Debt

Japan 102.6% - Down from 145% in 1996.

South Korea 101.7% - Global Auto Hangover

Portugal 100.6% - Euro Crisis Hangover

Chile 98.9% - Financial Crisis Hangover

Spain 93.2% - Euro Crisis Hangover

Austria 88.8% - Cheap Interest Rate Borrowing

New Zealand 83.7% - 2008 Financial Crisis Hangover

UK 83.6% - London is Corporate Tax Haven

Australia 75% - 2008 Meltdown & Housing Bubble Hangover

US 74% - $15.2 trillion – Cheap Interest Rate Borrowing

US Corporate Debt in 2008 was $10.7 trillion. The Euro Crisis brought EU interest rates to zero and below zero. High taxes keep their banking system afloat.  Multinational corporations borrow in the EU because of zero interest rates. Asia invested in taking over US electronics, automotive and most other manufacturing and Asian companies spent $trillions to ramp up these manufacturing plants. The 2008 Mortgage Meltdown had a global effect many countries are still recovering from.

https://wolfstreet.com/2019/06/10/the-countries-with-the-biggest-corporate-debt-pileups-us-fizzles-in-24th-place-canada-shines-in-11th-place/

Comments

The 2008 Meltdown that created the Great Recession from 2009 to 2016 resulted in a doubling of all debt. It’s time to pay down all government, corporate and household debt and increase productivity and production.

The governments and corporations take turns funding debt, technology and product development, but governments need to pull back on spending, become more frugal, increase their own productivity and cut nonessentials.

Norb Leahy, Dunwoody GA Tea Party Leader